Guide to comparing renters insurance quotes

Steps to take when you compare quotes for renters insurance

Ready to begin the renters insurance cost comparison process and get a quote? First, it's necessary to understand the standard renters insurance coverage typically included in most renters insurance policies. Make sure you know how renters insurance works before you compare quotes. Renters insurance commonly provides three basic types of protection:

• Personal property coverage for your possessions. Standard renters insurance safeguards your personal belongings against damage from fire, smoke, lightning, vandalism, theft, explosion, windstorm, water, and other disasters listed in the policy. Experts recommend choosing replacement cost coverage instead of actual cash value when choose coverage for your damaged or stolen personal property.
• Liability. "Standard renters insurance policies provide liability protection against lawsuits for bodily injury or property damage that you or your family members cause to other people. It also pays for damage your pets may cause to other people's property," says Mark Friedlander, director of Corporate Communications for the Insurance Information Institute. "The liability portion pays for both the cost of defending you in court and for court awards, up to the limit of the policy. And your policy also provides no-fault medical coverage; so if a friend or neighbor is injured in your rental, you can submit their medical bills directly to your insurance company."
• Additional living expenses. If your rental home is destroyed by a disaster covered by your policy and you need to live elsewhere, you'll be covered for additional living expenses like hotel bills, temporary rentals, restaurant meals, and more. This is also called loss of use coverage.

Before you start contacting renters insurance companies to request renters insurance quotes, you'll need to:

1. Determine the value of your possessions, including furniture, clothing, electronics, appliances, and bedding. "If a fire destroyed your unit, you should have enough insurance to replace all of your possessions," Friedlander says.
2. Choose the level of your liability coverage. Liability limits typically began at around $100,000, although some insurance experts advise purchasing at least $300,000 worth of protection.
3. Decide on a deductible level. "A higher deductible is one of the easiest ways to cut the cost of your renters policy premium. Consider a deductible of at least $500, but if you can afford to raise it to $1,000 you may save as much as 25 percent off your premium," says Friedlander.
4. Prepare to answer questions each carrier may ask, some will be about your personal information, including:

• What is your name, address, telephone number, birth date, gender, Social Security number, marital status, and employment status?
• What is your insurance history (have you had any claims for insured losses in the past five years, dates when you last had property/renters coverage, etc.)?
• What is the distance from your rental to the nearest fire hydrant/fire service?
• Do you need additional insurance protection for valuables like artwork, jewelry, or electronics?
• Does your unit have safety features, such as deadbolt locks, fire extinguishers, a sprinkler system, a burglar alarm, etc.?

Replacement cost coverage vs. actual cash value

Renters insurance (like home insurance) protects your personal property. If your personal belongings are damaged or stolen and you file a claim, the insurance company will pay to replace your personal property, up to your coverage limits. You have the option of replacement cost coverage or actual cash value. Replacement value, or replacement cost coverage, is absolutely the best choice for protecting your personal belongings.

A replacement cost renters insurance policy will replace your possessions with those of similar quality, regardless of the age or condition of the damaged or destroyed ones. Actual cash value (ACV) policies take depreciation into account when calculating a value which means your 10-year-old TV will be basically worthless as far as your policy is concerned. That's why replacement cost coverage is the best choice when deciding how to handle the personal property coverage portion of your renters insurance policy.

How to compare renters insurance rates

Jonas Bordo, CEO/co-founder of Dwellsy in Los Altos, California, recommends that you compare quotes from at least three renters insurance quotes from three different insurers. "That will allow you to get a genuine comparison across three potentially very different options and provide a sense of what's possible," he says.

"One of these companies might be right for you, but your research might also point you toward the need to find something specific not offered by any of the three."

Friedlander agrees.

"Prices vary from company to company, so it pays to shop around. You can call companies or insurance agents directly or obtain quotes through various online platforms," says Friedlander. "Your state's insurance department may also provide information about insurers who offer this type of coverage."

When reviewing renters insurance quotes, make sure you perform an apples-to-apples comparison of coverage limits, recommends John Dowd, Jr., president/CEO of The Dowd Insurance Agencies in Holyoke, Massachusetts.

"Lower quotes may provide less coverage, which can cost you more in the long run," Dowd says, noting that the average premium price of renters insurance is often between $15 and $30 per month.

Be careful not to shop for a renters insurance policy based on price alone, however. The experts recommend choosing a company based on renters insurance quotes as well as customer service ratings (J.D. Power scores), financial strength (AM Best ratings), and other factors.

"Look for an agent or company representative who takes the time to answer your questions promptly and thoroughly and handles claims fairly and efficiently. Ask friends and relatives for their recommendations, too," Friedlander says.

When you compare quotes on renters insurance, you should also check to see what discounts are available that match your renter profile. For example, if you buy car insurance from the same insurance company you get your renters policy from, you can save an average of 6%.

Renters insurance comparison by coverage level

Good news: Insurance.com has done the legwork and performed a renters insurance price comparison among several major insurance companies. We've learned that it doesn't necessarily cost a lot more to get good insurance coverage, as the following chart reveals. The best renters insurance policy for you will fully protect you, at a price you can afford. It shows average renters insurance rates for common personal property and liability coverage levels:

Compare renters insurance by company

Curious to learn which particular companies offer the best value on a renters insurance policy based on coverage level? We've conducted a renters insurance quote comparison and found that some insurance companies are more affordable than others. You'll see which companies have the best rate for renters insurance coverage limits of 100k and 300k liability coverage:

Compare renters insurance rates in your state

Where you live will help determine how much you pay in renters insurance premiums. Insurance.com has done a renters insurance cost comparison across the country and determined which states charge less versus more for renters insurance. Here are the least and most expensive average state rates for renters insurance. Rates are for coverage levels of: $20,000, $40,000 and $60,000 in personal property coverage, with liability limits of $100,000 and $300,000, all with a $1,000 deductible.

Most expensive renters insurance premiums paid by state

Best renters insurance companies: Compare renters insurance companies by customer service

To find the best renters insurance carrier for you, make sure you select a company that offers quality customer service and that will live up to customer satisfaction expectations. You don't want to be unpleasantly surprised if you need to file a claim. Here are the best renters insurance companies to consider when shopping for a renters insurance policy, based on value, financial strength, customer complaint filings and customer satisfaction.